I was rear-ended!!

[mrfaust]

Another driver tailgated me for about a mile, tried to go around me, and rear-ended me. We have been going round and round with her insurance company. The police report is more in my favor than hers, however the report says "road rage". The insurance company started out wanting $4900, but keep dropping the amount to where it is now ($2400)(the front end of her car was totalled, while my car had a small crack in the bumper). Our finance company told us we were covered by their insurance but failed to tell us it was to cover THE CAR only. They sat on the claim for months (we didn't know this) and we were harrassed by a collectiona agency for a week, until the insurance company put a stop to it at my husband's request. We were paying insurance premiums. This may go to court. I need some advice on what to do. DMV is also considering suspending my license (when I found out about the insurance error I went out and immediately got proper coverage the next day through another insurance company). My husband and I believe I am at most 50% responsible and the fair thing is for us each to pay for our own damages (I received a check for $1000 from my insurance company). We get the feeling that they don't want to go to court, but we aren't sure. We can't afford to hire an attorney.

 

[I AM ALWAYS LIABLE]

Dear MrFaust:

Your comment and questions was:

"Another driver tailgated me for about a mile, tried to go around me, and rear-ended me. We have been going round and round with her insurance company. The police report is more in my favor than hers, however the report says "road rage". The insurance company started out wanting $4900, but keep dropping the amount to where it is now ($2400)(the front end of her car was totalled, while my car had a small crack in the bumper). Our finance company told us we were covered by their insurance but failed to tell us it was to cover THE CAR only. They sat on the claim for months (we didn't know this) and we were harrassed by a collectiona agency for a week, until the insurance company put a stop to it at my husband's request. We were paying insurance premiums. This may go to court. I need some advice on what to do. DMV is also considering suspending my license (when I found out about the insurance error I went out and immediately got proper coverage the next day through another insurance company). My husband and I believe I am at most 50% responsible and the fair thing is for us each to pay for our own damages (I received a check for $1000 from my insurance company). We get the feeling that they don't want to go to court, but we aren't sure. We can't afford to hire an attorney."

My response:

Yes, it does sound a little like "road rage." This same thing happened to me once, years ago, and I slowly, ever so slowly, came to a stop. I was upset with the driver, a young lady. She was no more than 3 feet behind me when I stopped and looked. I know it was dumb, but I got back in my car and stayed there, stopped, until she smartened up (took her a few minutes), and she had to actually put her car in reverse to get enough room to go around me !! Suffice it to say, and notwithstanding my little anecdote, I know better today . . . what I would do today is move over and let the other person go by (or have a passenger bring out the Thompson Sub-Machine Gun . . . just kidding)

Now, it seems to me that when you bought the car, you must have known you didn't have insurance. So, the finance company wanted to protect their interest in the vehicle (its value for the money they loaned you) and charged you for "single limit" insurance coverage; that is, coverage that would only protect their interest (the car) and the remaining balance on the loan.

I would suggest that you write to the claims adjuster at the woman's insurance company and suggest that you both submit the claim, as it stands now, to an independant arbitrator for "binding arbitration" - - e.g., the American Arbitration Association.

Let us know what happens, and thanks for writing.

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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."

 

[mrfaust]

Thank you for the response. I did have CSAAA insurance when I first got the car; however, when I lost my job the finance company said,"Oh don't worry, we can get you less expensive insurance". So I did have insurance when I first got the car, the vague and abiguous insurance came later. How does this equal responsibility thing work? The insurance company is telling us the law states each party pays for 50% of the damage to the other party, but that doesn't seems fair if you have a case like mine where someone has 4 times the amount of damage. If this is true then what about them paying my damages (they haven't)? What about the license suspension issue since I have had the correct coverage since October? I agree that I should have let her go around me, but I think her following that close she would have hit me no matter what I did. I am going to try the binding arbitration idea, however, but I would like to know about my other questions. Thanks.

 

[I AM ALWAYS LIABLE]

Dear mrfaust:

You said:

"Thank you for the response. I did have CSAAA insurance when I first got the car; however, when I lost my job the finance company said,"Oh don't worry, we can get you less expensive insurance". So I did have insurance when I first got the car, the vague and abiguous insurance came later. How does this equal responsibility thing work? The insurance company is telling us the law states each party pays for 50% of the damage to the other party, but that doesn't seems fair if you have a case like mine where someone has 4 times the amount of damage. If this is true then what about them paying my damages (they haven't)? What about the license suspension issue since I have had the correct coverage since October? I agree that I should have let her go around me, but I think her following that close she would have hit me no matter what I did. I am going to try the binding arbitration idea, however, but I would like to know about my other questions. Thanks.

My Response:

Okay, you had insurance when you first got the car. So what? You admit that you lost your job, and as a result, lost your "good" insurance. When the finance company found this fact out, they became a little nervous about THEIR investment (the car). You are imbued, by law in most all States, to know what kind of insurance you buy, and its terms and conditions - - like any other contract; say, for a house, your credit cards, construction, etc. You bought single limit insurance from the finance company because it was cheap, all you could afford, and the finance company was only interested in PROTECTING their car, not you or others that you might injure. All they care about (and rightly so) is that their car is protected. That is the extent of their obligation; to protect their car until it's paid off. The car finance contract says, "No insurance? We take the car back," or words to that effect. Didn't it seem strange to you that you were paying far, far less for insurance than you had before? If insurance were that cheap, wouldn't you have gotten a policy like that a long time ago? They gave you, or your were sent, a Single Limit policy that spelled out all of the terms and conditions. Bottom line: You failed to know what the finance company "insurance" protected, and "single limit" insurance NEVER meets any State's minimums for liability, of which you had no liability coverage. In effect, you had no insurance covering your liability, and that's why the DMV is going to take your license and why you'll be fined. You never said what State you're in, so I can't address your other State specific questions.

Take the arbitration route. That's your best hope; or, you can take the other person to Small Claims Court. Best of luck to you.

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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."

 

[rachel cann]

you don't know how lucky you are. i was rear-ened and had to go to a chiropractor 3 times a week for a yera. the other driver had no insurance. i am still limping and have pain and will be stuck with this the rest of my life.i know it's no help but try to be glad

 

[mrfaust]

The state I am dealing with is California. My license is being suspended in April. I am looking into hiring an attorney so I won't end up paying for this girl's damages too. I think I have suffered enough. Everyone I talk to, lawyers and laypeople, say the same thing. Even the DMV lady said it. "It doesn't matter, she hit you, you shouldn't have to pay anything". I'm not asking for any remedy, just to not have to pay. I don't think I should have to pay for her damages on the sole factor that I did not have auto insurance. That is their only basis for their claim. When we said we were willing to go to court over it, they hemmed and hawed, which made my husband think they didn't want it to go that route. I get the feeling they just want me to pay, no questions asked, on the sole fact I do not have an insurance company. The paralegal who interviewed me was surprised to learn that this person was not cited on the spot. So basically I feel that since I am losing my license I have nothing to lose. I did ask for binding arbitration and they ignored me (so far), so that is that. I just don't want them to send another collection agent after me to harrass my coworkers.

 

[mrfaust]

I did as suggested and request binding arbitration. The insurance company has not replied yet, and it's been weeks. My license is definitely suspended end of April (regardless of the circumstances, based only on no insurance). I am accepting this consequence. Should I consult with an attorney? I'm already getting hammered for no insurance (losing my driving priviledges for a year), but I don't think I should have to pay for the damages based solely on the no insurance issue. I am not asking them to pay for mine. Help!!

 

[mrfaust]

I forgot to add, should I keep my current insurance coverage even though I won't be driving? It seems easier than letting it lapse, then having to get it all over again. Also, what is a reasonable amount of money for me to pay (should it come to that?). I don't think it's fair I should pay the whole thing. I am in California. I was never cited and neither was she. I haven't had any legal notices except from the DMV (no police, no court, no nothing).